Which method is frequently used to evaluate risk levels?

The Risk Matrix is a commonly used tool in risk management for evaluating risk levels. It provides a visual representation of risks by plotting their likelihood of occurrence against their potential impact. This helps organizations to categorize risks based on severity and prioritize them accordingly.

Using a Risk Matrix allows decision-makers to quickly assess which risks require immediate attention and which can be monitored over time. It also aids in communicating risk levels to stakeholders in a clear and concise manner, helping to facilitate informed decision-making regarding risk mitigation strategies.

While Cost-Benefit Analysis is useful for evaluating the financial implications of different decisions, it does not inherently evaluate risk levels. Similarly, SWOT Analysis focuses on identifying strengths, weaknesses, opportunities, and threats to an organization, but it is not specifically designed to quantify risks. Market Research is primarily concerned with gathering information about consumers and markets and does not directly relate to the assessment of risk levels.